How much commission should I offer on a flip?

Question

I have a house I’m flipping and recently got my real estate license to list my properties myself. I know the standard commission is 3% for each side, but do people in this situation usually offer the buyers agent a smaller amount, like 2% or some other amount?  Is that acceptable?  What do you guys all do?

Russell Brazil · Answer

You should offer out the same as what the other houses in the area are offering. Offering lower, then you are putting yourself at a disadvantage to your competition.

Generally the only time to offer higher than the competition is if you have a property that isn't moving.

Shiela R. · Answer

I certainly don't do this but I know many agents who set searches in the MLS by minimum commission paid.  Just be aware that offering less than the local market commission will discourage showings from the professionals who have the qualified buyers.

Dwayne Byrd · Answer

I don't, but some agents filter properties they are going to show by selling commission. I just told someone this past week who was offering 2 percent, that their 330k house would net them a ton more response if they at least went to 2.5 percent as a minimum. 2 percent listing sometimes get looked at as being "cheap" and the person could have potentially cut other corners. In his instance 1650 would net him a ton more showings ect.

Bob S. · Answer

Why should a realtor work for less then the norm?

Theresa Harris · Answer

Do the same as you normally would. Often the split is not 50:50 because the listing agent has more costs.

Scott E. · Answer

You should offer the industry standard. Why would a house flipper get a discounted rate compared to any other seller in the market?

Industry standard around here is 6%. That means the buyer agent gets 3%, and the seller agent gets 3%.

I have some agents who have offered to list flip deals for me at 2% or 2.5% IF they represented me when I bought the deal. I never ask for a discount. But I'll take one if it's offered.

Eliott Elias · Answer

You can offer whatever you want, just not $0. You should be competitive, agents look at what they are making and make skip your property because of the commission split.

How much commission should I offer on a flip?

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